Wells Fargo & Company Upgrades TeraWulf (NASDAQ:WULF) to Strong-Buy

Key Points

• Wells Fargo upgraded TeraWulf to “strong-buy,” joining a broadly positive analyst consensus. The stock has an average “Buy” rating and a consensus price target of $33.99.
• TeraWulf shares opened at $16.47, up 7%, but the company recently reported a substantial quarterly loss of $1.94 per share versus the expected $0.24 loss, while revenue fell 6% year over year to $44.77 million.
• Insiders sold roughly 405,626 shares worth $8.0 million over the past 90 days, while institutional ownership remains high at 62.49%; TeraWulf is expanding from bitcoin mining into AI and high-performance computing infrastructure.

TeraWulf (NASDAQ:WULF - Get Free Report) was upgraded by equities researchers at Wells Fargo & Company to a "strong-buy" rating in a research report issued to clients and investors on Thursday, Zacks reports.

Other equities analysts have also issued research reports about the company. Morgan Stanley cut their target price on TeraWulf from $72.00 to $62.50 and set an "overweight" rating on the stock in a research note on Thursday, August 13th. Lucid Cap Mkts raised shares of TeraWulf to a "strong-buy" rating in a research report on Wednesday, May 27th. B. Riley Financial raised their price target on shares of TeraWulf from $32.00 to $40.00 and gave the company a "buy" rating in a report on Monday, August 3rd. Keefe, Bruyette & Woods cut their price objective on shares of TeraWulf from $33.00 to $30.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 28th. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $30.00 price objective on shares of TeraWulf in a research note on Friday, August 21st. Four investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $33.99.

TeraWulf Stock Up 7.0%

TeraWulf stock opened at $16.47 on Thursday. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 27.25. The firm has a market cap of $8.22 billion, a P/E ratio of -3.77 and a beta of 3.70. The business has a fifty day moving average of $17.17 and a two-hundred day moving average of $19.69. TeraWulf has a twelve month low of $10.43 and a twelve month high of $29.84.

TeraWulf (NASDAQ:WULF - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($1.94) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.24) by ($1.70). The company had revenue of $44.77 million during the quarter, compared to analysts' expectations of $46.00 million. TeraWulf had a negative net margin of 1,179.94% and a negative return on equity of 458.62%. The company's revenue was down 6.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.05) earnings per share. On average, analysts forecast that TeraWulf will post -0.95 earnings per share for the current fiscal year.

Insider Buying and Selling at TeraWulf

In other news, Director Walter E. Carter sold 130,626 shares of the business's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $15.14, for a total transaction of $1,977,677.64. Following the sale, the director owned 229,090 shares in the company, valued at approximately $3,468,422.60. The trade was a 36.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Paul B. Prager sold 137,500 shares of the company's stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $17.06, for a total transaction of $2,345,750.00. Following the transaction, the chief executive officer owned 3,807,552 shares in the company, valued at approximately $64,956,837.12. This trade represents a 3.49% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders acquired 11,968 shares of company stock worth $189,962 and sold 405,626 shares worth $7,980,928. 15.90% of the stock is currently owned by company insiders.

Institutional Trading of TeraWulf

A number of institutional investors have recently bought and sold shares of the stock. Engle Capital Management L.P. boosted its position in TeraWulf by 574.3% in the first quarter. Engle Capital Management L.P. now owns 2,950,100 shares of the company's stock valued at $42,570,000 after buying an additional 2,512,600 shares during the last quarter. The Manufacturers Life Insurance Company purchased a new position in TeraWulf during the 2nd quarter worth approximately $3,534,000. Jennison Associates LLC acquired a new stake in TeraWulf during the 1st quarter valued at approximately $53,418,000. Troluce Capital Advisors LLC acquired a new stake in TeraWulf during the 1st quarter valued at approximately $33,189,000. Finally, GeoSphere Capital Management LLC acquired a new stake in TeraWulf during the 4th quarter valued at approximately $2,872,000. 62.49% of the stock is currently owned by institutional investors and hedge funds.

About TeraWulf

TeraWulf Inc NASDAQ: WULF develops and operates digital-asset mining and high-performance computing infrastructure. The company has focused primarily on bitcoin mining while expanding its data-center platform to support artificial intelligence, cloud computing and other high-density computing applications.

TeraWulf emphasizes access to low-cost, predominantly zero-carbon energy and designs, builds and operates energy-intensive data-center facilities. Its operations have included the Lake Mariner facility in New York and the Nautilus Cryptomine facility in Pennsylvania, which was developed in collaboration with Cumulus Coin.

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